1. What are some of the relative advantages and disadvantages of fixed versus flexible exchange rates? 2. Explain why the BP schedule in Figure 15-1 is upward sloping. What factors cause a shift in...

1. What are some of the relative advantages and disadvantages of fixed versus flexible exchange rates?

2. Explain why the BP schedule in Figure 15-1 is upward sloping. What factors cause a shift in the BP schedule? Explain.